News | The HOTMA Final Rule is Here!

HOTMA is here! Remember HOTMA? If not, we understand. It has been a while!  Although a HUD rules revision, HOTMA will impact the LIHTC and other programs that use the HUD regulations. We will keep you posted as we digest the many, many pages (303 pages to be exact)...

The new final rule draft that was released in January can be found HERE.

First, though a little background.

What is HOTMA?

On July 29, 2016, the Housing Opportunity through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA makes numerous amendments to Sections 3, 8, and 16 of the United States Housing Act of 1937 (1937 Act), including changes to income calculation and reviews. These will have some effect on LIHTC and other programs that use HUD income calculation rules. 

On September 17, 2019, HUD issued a proposed rule to implement Sections 102, 103, and 104 of HOTMA. However, only Sections 102 and 104 apply to Multifamily Housing programs.

HUD finalized rulemaking to put Sections 102 and 104 of HOTMA into effect through revisions to HUD’s regulations found in 24 CFR Part 5 and 24 CFR Part 891.

Section 102 addresses income reviews, including the frequency of income reviews, and revises the definitions of income and assets.

Section 104 sets asset limits for the Section 8 and Public Housing programs. Asset limits do not apply to the Section 202/8, Section 202/162 Project Assistance Contract (PAC), 202/811 Project Rental Assistance Contract (PRAC), Senior Rental Preservation Assistance Contract (SPRAC), or the Section 811 Project Rental Assistance (PRA) programs.

The following is information shared by HUD on their HOTMA webpage

Joint Supplemental Notice (Coming Spring/Summer 2023!)

The Offices of Multifamily Housing and Public and Indian Housing will publish a joint supplemental notice in Spring/Summer 2023 to provide comprehensive implementation instructions to Multifamily Owners and Public Housing Agencies (PHAs).

For more information about the applicability of HOTMA to PHAs, click here.

HOTMA Webinars

The Office of Multifamily Housing will publish a pre-recorded webinar to this page introducing stakeholders to HOTMA. Additional webinars will be posted prior to the effective date of the final rule addressing topics including: new requirements related to income/adjusted income, assets, mandatory deductions, and interim reexaminations.

Sign up for the Office of Housing’s mailing list below to stay up to date on webinars and additional resources.

Introduction to HOTMA: (Coming Soon in February 2023!)

In-depth HOTMA Topics: (Coming Soon Spring/Summer 2023!)

Fact Sheet

A one-page summary of the key HOTMA changes to Multifamily Housing programs can be found here.

Updates to TRACS and HUD Forms

The Office of Multifamily Housing will be updating the Tenant Rental Assistance Certification System (TRACS) and HUD forms frequently used by owners/agents and HUD (e.g., Form HUD-50059, Form HUD-50059A, Form HUD-9887/9887A, Form HUD-9834, Model Leases, etc.) to conform with HOTMA’s requirements.

Check the TRACS webpage for additional details on systems updates.

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Have a Question?

Please send your questions to [email protected].